Amaravati, June 24: The Andhra Pradesh Cabinet has approved a major reduction in the quarterly tax for tourist buses. The decision is expected to encourage hundreds of buses registered in other states to return and register in Andhra Pradesh.
Under the revised structure, the quarterly tax has been reduced from Rs 4,000 per seat to Rs 2,500 per seat. The move comes after repeated requests from the Andhra Pradesh Private Bus Operators’ Association.
Andhra Pradesh Tourist Bus Tax Cut Offers Relief
For several years, many private bus operators chose to register their vehicles in states such as Nagaland, Arunachal Pradesh and Odisha. These states offered lower tax rates, making registration more affordable.
After registering their buses there, operators obtained an All India Tourist Permit (AITP) and ran services across multiple states, including Andhra Pradesh.
As a result, Andhra Pradesh lost potential tax revenue from these vehicles.
Government Expects More Buses to Return
Transport officials believe the Andhra Pradesh Tourist Bus Tax Cut will encourage more than 500 buses to shift their registrations back to the state.
The Transport Department proposed reducing the tax by Rs 1,500 per seat, and the Cabinet approved the proposal during its recent meeting.
Officials say the decision will improve regulatory oversight and help authorities monitor vehicle fitness and safety standards more effectively.
Better Revenue and Compliance
According to officials, many buses registered in other states rarely operated there. In some cases, authorities found it difficult to verify vehicle fitness and compliance records.
By bringing these vehicles back under Andhra Pradesh registration, the government expects better monitoring and improved enforcement of transport regulations.
In addition, the state hopes to increase revenue through local registration and home tax collections.
Bus Operators Welcome the Decision
The Andhra Pradesh Private Bus Operators’ Association welcomed the Cabinet’s decision. Representatives of the association met Transport Minister Mandipalli Ramprasad Reddy at the state secretariat and thanked him for supporting the proposal.
Association leaders said the tax reduction would provide significant relief to operators and encourage more buses to register within Andhra Pradesh.
They also expressed confidence that the move would strengthen the transport sector while benefiting both operators and the state government.
Positive Impact on Transport Sector
Industry representatives believe the reduced tax burden will make Andhra Pradesh a more attractive place for bus registrations.
As more operators return to the state, authorities expect stronger compliance, higher revenue collections, and better regulation of tourist transport services across Andhra Pradesh.